Bulls n Bears Daily Market Commentary : 21 August 2018

Tue Aug 21 18:02:36 CAT 2018

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 21 August 2018

 <http://www.fidelitylife.co.zw/> 

Zimbabwe Stock Exchange Update

The All Share index rebounded 0.09 points to close at 112.86 points. PPC
LIMITED  went up by $0.0464 to close at $1.1964, ZB FINANCIAL HOLDINGS added
$0.0325 to end at $0.3325 while BRITISH AMERICAN TOBACCO put on $0.0206 to
trade at $26.2500. ZIMPLOW  rose by $0.0175 to $0.1900 while CBZ HOLDINGS
gained $0.0100 to settle at $0.1200.

However, AMALGAMATED REGIONAL TRADING came off $0.0048 to close at $0.0552,
OK ZIMBABWE eased $0.0046 to $0.2304 whilst BINDURA  slipped $0.0040 to
close at $0.0560. STARAFRICACORPORATION closed at $0.0120 following a
$0.0008 loss.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Uganda shilling weaker as banks' demand weighs

(Reuters) - The Uganda shilling        weakened on Monday, undercut by an
uptick in demand for the  dollar mostly by commercial banks beefing up their
positions. 

At 0926 GMT commercial banks quoted the shilling at 3,750/3,760, weaker than
Friday's close of 3,736/3,746.

South  Africa

South Africa's rand climbs as dollar hit by Trump Fed comments

(Reuters) - South Africa’s rand firmed more than one percent in early trade
on Tuesday, matching gains by its emerging market peers as criticism of
Federal Reserve rate hikes by U.S. President Donald Trump hurt the dollar
and revived demand for some risk assets.

* At 0630 GMT the rand was 1.1 percent firmer at 14.3700 per dollar, its
firmest since Thursday, in what traders said was the beginning of a
consolidation pattern with momentum indicators showing the unit was
oversold.

* The rand’s 3-day Relative Strength Index (RSI), used to identify oversold
or overbought signals by comparing the current price to previous periods,
dipped below the 70-mark overnight indicating a reversal of the recent bear
trend.

* The rand crashed to a two-year low last week as the financial crisis in
Turkey rattled sentiment towards emerging markets broadly, adding to
concerns about the impact of the U.S.-China trade spat on global economic
growth.

* But with Turkish markets closed for a religious holiday and anticipated
talks between the United States and China seen lowering the temperature of
the dispute, Trump’s central bank comments were the main catalyst.

* In an interview with Reuters Trump said he was “not thrilled” with Federal
Reserve Chairman Jerome Powell for raising interest rates, causing the
greenback to slide to its lowest level since Aug. 9.

* Bonds also firmed, with the yield on the benchmark 2026 paper down 3.5
basis points to 9 percent.

* Stocks were set to open a touch lower at 0700 GMT, with the Johannesburg
Stock Exchange’s Top-40 futures index down 0.1 percent.

       <mailto:info at bulls.co.zw> 

Asia

Asian stocks up on hopes trade tensions ease, Trump comments hit dollar

(Reuters) - Asian stocks rose on Tuesday, supported by hopes Beijing and
Washington would dial back trade hostilities, though comments from the U.S.
president about the yuan and Federal Reserve policy capped gains and weighed
on the dollar.

Spreadbetters expected European stocks to open slightly lower, with
Britain’s FTSE dipping 0.25 percent, Germany’s DAX shedding 0.05 percent and
France’s CAC losing 0.1 percent.

In an interview with Reuters on Monday, President Donald Trump said that
China was manipulating its currency to make up for having to pay tariffs
imposed by Washington on some imports from China. This kept global trade
conflict concerns alive and dented some of the market optimism ahead of
upcoming U.S.-China trade talks.

He also said he believed the euro was being manipulated.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.6
percent.

Australian stocks lost 1 percent, South Korea’s KOSPI gained 0.95 percent
and Japan’s Nikkei advanced 0.2 percent.

Chinese shares rose, with the Shanghai Composite Index climbing more than 1
percent, helped by bargain hunting of consumer and healthcare firms after
their recent slump.

Wall Street’s major indexes rose on Monday on optimism over trade talks
between the United States and China, though they fell from session highs
after Trump’s comments.

Immediate focus was on the lower-level trade talks due to start this week
between the United States and China. Speculation that the talks might help
ease trade tensions has shored up the broader equity markets over the past
few sessions.

Market optimism was tested, however, after Trump said he did not “anticipate
much” from the discussions.

In currency markets, the dollar came under pressure after Trump reiterated
his displeasure at the Fed’s rate hikes, saying the central bank should do
more to help him boost the U.S. economy.

The dollar index against a basket of six major currencies was down 0.4
percent at 95.499, extending losses from the previous day.

The euro brushed a 12-day high of $1.1544, stretching its gains after
climbing about climbing about 0.35 percent overnight.

The U.S. currency touched 109.775 yen, its lowest since late June before
edging back to 110.085.

The onshore Chinese yuan rose to as high as 6.828 per dollar, its strongest
since Aug. 9. The currency was on track for its fourth session of gains,
pulling further away from 6.934, its weakest since January 2017 marked last
week.

The yuan has weakened to a 19-month low against the dollar earlier this
month amid concerns towards the country’s economic growth, Sino-U.S. trade
war worries and a broad rally by the dollar.

The yuan has since pulled back slightly from the trough, with the People’s
Bank of China taking steps perceived by investors that the authorities were
not going to allow the currency to keep depreciating indefinitely.

The yield on the 10-year U.S. Treasury note was at 2.835 percent after
stooping to a near a six-week low of 2.815 percent overnight in the wake of
Trump’s interest rate comments.

Oil prices nudged further up after rising the previous day, when investors
grew more concerned about an expected fall in supply from Iran due to U.S.
sanctions.

U.S. crude futures were up 0.33 percent at $66.65 per barrel while Brent
added 0.05 percent to $72.25 per barrel. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold at 1-week high as Trump's Fed criticism weighs on dollar

(Reuters) - Gold steadied after touching a one-week high on Tuesday as the
dollar weakened after U.S President Donald Trump criticised the Federal
Reserve for raising interest rates.

A weaker dollar generally boosts the price of dollar-denominated gold.

Spot gold was slightly firmer at $1,190.68 an ounce by 1411 GMT, after
touching $1,196.27 earlier, the highest since Aug. 14. The precious metal
was gaining for the third straight session.

U.S. gold futures climbed 0.2 percent to $1,191.30 an ounce.

Trump also said in the interview with Reuters that the U.S. central bank
should do more to help him to boost the economy.

Trump made his first departure from a tradition of American presidents
rarely criticising the Fed in July when he condemned the U.S. central bank’s
monetary policy tightening.

Although Trump’s comments helped gold rise, Julius Baer analyst Carsten
Menke said they would not fundamentally change the outlook for bullion or
monetary policy in the United States.

“In the end what determines the outlook for U.S. monetary policy is the
health of the U.S economy,” he said.

Gold is highly sensitive to rising U.S. rates as it increases the
opportunity cost of holding non-yielding metal while boosting the dollar.

The U.S. central bank has raised interest rates twice this year and is
targeting two more hikes, with the next one seen in September. However,
Atlanta Fed President Raphael Bostic said on Monday he was maintaining his
expectation for only one more interest rate hike this year.

Meanwhile, hedge funds and money managers increased their net short position
in COMEX gold contracts for the sixth straight week to another record in the
week to Aug. 14, U.S. Commodity Futures Trading Commission data showed.

Resistance for gold sits at $1,200.70, the 38.2 percent Fibonacci
retracement level of the July high to August low range, while support is at
$1,146.20, which is the January 2017 low, ScotiaMocatta said in a note.

Meanwhile, investors looked ahead to the release of the Fed’s August policy
meeting minutes on Wednesday and the bank’s annual symposium at Jackson
Hole, Wyoming, later this week.

Markets were also focused on a U.S.-China trade meeting this week, but Trump
said on Monday he did not expect much progress from talks with Beijing.

Elsewhere, platinum rose 0.1 percent to $794.60 an ounce, having touched its
highest in a week. Spot silver climbed 0.3 percent to $14.79 an ounce and
palladium edged up 0.4 percent to $914.50 an ounce.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

 <mailto:info at bulls.co.zw> 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180821/5f1353cb/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180821/5f1353cb/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180821/5f1353cb/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180821/5f1353cb/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180821/5f1353cb/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180821/5f1353cb/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 31067 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180821/5f1353cb/attachment-0011.jpg>